topic Re: Some basic CC advice needed in Credit Cards

Some basic CC advice needed

Anonymous — Tue, 03 Feb 2015 05:38:03 GMT

Hi, never posted here before, looking for some advice as to getting another card or two to help build my credit.

Right now I just have two cards, a CapOne platinum with 0 balance I never use (this was my first card when rebuilding credit) and a Chase Freedom I put lots of minor stuff on and pay off every month, rolling over a 10% balance. My credit was steadily going up for awhile then it stopped at 675. There's so many cards out there I don't know where to start.. And I don't want to be turned down for one. Any advice?

Also am I doing the right thing by carrying over a 10-15% balance every month on a card or should I be paying them off every month?

Thanks

Re: Some basic CC advice needed

mikelo22 — Tue, 03 Feb 2015 05:54:33 GMT

@Anonymous wrote:
Hi, never posted here before, looking for some advice as to getting another card or two to help build my credit.

Right now I just have two cards, a CapOne platinum with 0 balance I never use (this was my first card when rebuilding credit) and a Chase Freedom I put lots of minor stuff on and pay off every month, rolling over a 10% balance. My credit was steadily going up for awhile then it stopped at 675. There's so many cards out there I don't know where to start.. And I don't want to be turned down for one. Any advice?

Also am I doing the right thing by carrying over a 10-15% balance every month on a card or should I be paying them off every month?

Thanks

Welcome to MyFico! Hopefully you find the answers you seek here; everyone here is very helpful.

It looks like you've been managing your credit just fine so far and you have been disciplined in payment history. Regarding your question on maintaining a ~10% balance, you should not carry a balance. That will actually hurt your score. It's ok to have a balance when the statement cuts, but you should be sure to try and pay in full (PIF as we call it here) before the due date. It will increase your score and you won't rack up any interest. It is best, however, to carry a 1-9% balance when the statement cuts.

If you are looking for another card, you first need to ask yourself what you spend money on. What kinds of categories do you usually run through each month? Examples would be groceries, gas, dining, Amazon, etc. Knowing what you spend your money on and how much money you spend will help us give you some helpful suggestions of some decent cards. Chase Freedom is a very solid card, so you did well on picking that up with its rotating categories each quarter.

That said, don't feel compelled to get another card if right now it would not suit you. There is no inherent benefit to having more cards. In fact, if anything, it can just become more cumbersome to manage.

Re: Some basic CC advice needed

Anonymous — Tue, 03 Feb 2015 06:33:08 GMT

My score was actually 695 and it dropped to 675, the alert said I was not actively pursuing new credit and I have too few accounts and a short credit history even tho the age on my oldest account is 9 years. Anyway the 'too few sources of credit' is the main reason I'm looking to get at least one more card now and the fact my score was steadily rising then dropped and hasn't budged in months.

Its funny you mention Amazon we use it religiously. Other than that entertainment, movies, gas, Starbucks, misc daily small things like that I use my Freedom for.

Really I just need to get my score up for the future. Whichever cards will help with that the most, have the least drawbacks, be the easiest to use, all of these.. That's the one I want. Should I be looking at store cards or stay away from those? An AMEX maybe?

Re: Some basic CC advice needed

SunriseEarth — Tue, 03 Feb 2015 06:50:16 GMT

First off, you should see if you can make Cap One a more useful card. See if you can PC that from the Platinum to the QS...that way, you'll get 1.5% back on everything and it'd be a slightly better general spend card than Freedom. Contact a Cap One CSR. if they can't help, you can contact the EO.

You could get into AMEX with your scores. If you have a Costco membership, TrueEarnings would probably be your best match. BCE would be okay for some of your categories like gas when Freedom didn't offer them that quarter.

I actually think the Barclay Sallie Mae MC would be the best match for your spend with Amazon and gas. SM does 5% cash back for bookstore spend (up to $750 a month) and gas (up to $250 a month), so that would also be good when those aren't Freedom categories.

If you have a store that you frequent, store cards are worth consideration, but only if they offer some sort of incentive. Some offer 0% special financing for large purchases, some offer a generous rewards structure, and some offer discounts/sales.

Re: Some basic CC advice needed

Anonymous — Tue, 03 Feb 2015 20:25:06 GMT

Thanks for all the advice.

I just found out about creditkarma a few min ago, and on there I have a 726 TU and a 729 Equifax.. but it's also showing TU is still reporting a collection that I paid off 2 years ago, so now I have to take care of that.

I am definitely going to try to upgrade my CapOne, with the CreditKarma scores above do I have a good shot of getting approved for the Sallie Mae card?

Re: Some basic CC advice needed

SunriseEarth — Tue, 03 Feb 2015 22:17:00 GMT

@Anonymous wrote:
Thanks for all the advice.

I just found out about creditkarma a few min ago, and on there I have a 726 TU and a 729 Equifax.. but it's also showing TU is still reporting a collection that I paid off 2 years ago, so now I have to take care of that.

I am definitely going to try to upgrade my CapOne, with the CreditKarma scores above do I have a good shot of getting approved for the Sallie Mae card?

Barclay typically pulls TU. I think your odds are pretty good.

Still, there's no harm in sending a GW letter on the paid collection to see if they'll remove. If you need help on that, you might want to look at the "Rebuilding Your Credit" forum.

Re: Some basic CC advice needed

Anonymous — Tue, 03 Feb 2015 23:13:34 GMT

You are on a good path, i would go with the Discover it card.

Congrats and welcome to the forums

Re: Some basic CC advice needed

Anonymous — Tue, 03 Feb 2015 23:40:41 GMT

@Anonymous wrote:
My score was actually 695 and it dropped to 675, the alert said I was not actively pursuing new credit and I have too few accounts and a short credit history even tho the age on my oldest account is 9 years. Anyway the 'too few sources of credit' is the main reason I'm looking to get at least one more card now and the fact my score was steadily rising then dropped and hasn't budged in months.

Its funny you mention Amazon we use it religiously. Other than that entertainment, movies, gas, Starbucks, misc daily small things like that I use my Freedom for.

Really I just need to get my score up for the future. Whichever cards will help with that the most, have the least drawbacks, be the easiest to use, all of these.. That's the one I want. Should I be looking at store cards or stay away from those? An AMEX maybe?

Your file is thin-(though you have 9 years) so there isn't much on it to raise your scores necessarily. You also mention a collection, though only on one bureau; that can be a score killer.

As for store cards, I've always been under the impression that store cards are considered less prime (maybe not sub-prime) than standard cards. They serve their purpose though, so if you want/need credit, don't hesitate. Amex is a good prime but they might give you the same credit history alert.

Re: Some basic CC advice needed

Pway — Tue, 03 Feb 2015 23:47:57 GMT

@Anonymous wrote:
Hi, never posted here before, looking for some advice as to getting another card or two to help build my credit.

Welcome to the forums.

Right now I just have two cards, a CapOne platinum with 0 balance I never use (this was my first card when rebuilding credit) and a Chase Freedom I put lots of minor stuff on and pay off every month, rolling over a 10% balance. My credit was steadily going up for awhile then it stopped at 675. There's so many cards out there I don't know where to start.. And I don't want to be turned down for one. Any advice? Have you weighed your options with Capital One? They have some great cards and they have unlimited cash back on their cards and you do not have to spend in one category or another.

Also am I doing the right thing by carrying over a 10-15% balance every month on a card or should I be paying them off every month? For best scoring it should be 1-9 reporting balance.

Thanks

Re: Some basic CC advice needed

Anonymous — Tue, 03 Feb 2015 23:54:25 GMT

@SunriseEarth wrote:
First off, you should see if you can make Cap One a more useful card. See if you can PC that from the Platinum to the QS...that way, you'll get 1.5% back on everything and it'd be a slightly better general spend card than Freedom. Contact a Cap One CSR. if they can't help, you can contact the EO.

You could get into AMEX with your scores. If you have a Costco membership, TrueEarnings would probably be your best match. BCE would be okay for some of your categories like gas when Freedom didn't offer them that quarter.

I actually think the Barclay Sallie Mae MC would be the best match for your spend with Amazon and gas. SM does 5% cash back for bookstore spend (up to $750 a month) and gas (up to $250 a month), so that would also be good when those aren't Freedom categories.

If you have a store that you frequent, store cards are worth consideration, but only if they offer some sort of incentive. Some offer 0% special financing for large purchases, some offer a generous rewards structure, and some offer discounts/sales.

SE hit the nail on the head here. The Sallie Mae MC is one of the best cards around for every day use (orders fulfilled by Amazon and gift cards from Amazon also earn 5% as a bookstore). If you're not supporting a family, $250 per month for gas & groceries each is plenty of capacity. It is also quite easy to get the card with scores in the high 600s from what I hear, compared to other rewards cards which require a score in the low to mid 700s. If you are planning on applying for more than one card, apply for the Sallie Mae card first, as they are a bit sensitive to inquires.

Re: Some basic CC advice needed

Anonymous — Tue, 03 Feb 2015 23:56:14 GMT

@Anonymous wrote:
You are on a good path, i would go with the Discover it card.
Congrats and welcome to the forums

Personally, I feel that it is more beneficial to branch out from the rotating 5% categories. Although it is nice when you have 2 categories which you use, when they overlap you get a basic 1% on everything else.

Re: Some basic CC advice needed

Anonymous — Wed, 04 Feb 2015 00:00:22 GMT

The card you choose should benefit you the most. You have good suggestions on that already. My question is do you have any installment loans? If not a share secured loan from a credit union will certainly give your score a nice lil boost. Alliant CU may have the best one, 4years, 500 bucks 2.9 percent currently, and they pay .9% interest on the deposit funds. Yournet cost will be about 25 bucks over the 4 year loan term. I picked up 25 points for adding it to a file with no installment loans. Payments on my silly little loan are 11.02.

Re: Some basic CC advice needed

Themanwhocan — Wed, 04 Feb 2015 00:07:58 GMT

@Anonymous wrote:
Hi, never posted here before, looking for some advice as to getting another card or two to help build my credit.

Right now I just have two cards, a CapOne platinum with 0 balance I never use (this was my first card when rebuilding credit) and a Chase Freedom I put lots of minor stuff on and pay off every month, rolling over a 10% balance. My credit was steadily going up for awhile then it stopped at 675. There's so many cards out there I don't know where to start.. And I don't want to be turned down for one. Any advice?

Also am I doing the right thing by carrying over a 10-15% balance every month on a card or should I be paying them off every month?

Thanks

What is the Credit limit on each card, and what balance is reporting on each? When did you open each card (ie, how old are they)?

What else is on your credit reports? Any baddies? Any Morgage, Car loan, Installment loan, student loan, etc?

The Credit Karma scores are useless (use that site for supplimental info about what is on your credit reports, etc). You say your FICO score is 675, but where did you get that score from, and which credit bureau data was used (Experian, Equifax, Transunion)?

Re: Some basic CC advice needed

Themanwhocan — Wed, 04 Feb 2015 00:23:07 GMT

@Anonymous wrote:
Thanks for all the advice.

I just found out about creditkarma a few min ago, and on there I have a 726 TU and a 729 Equifax.. but it's also showing TU is still reporting a collection that I paid off 2 years ago, so now I have to take care of that.

I am definitely going to try to upgrade my CapOne, with the CreditKarma scores above do I have a good shot of getting approved for the Sallie Mae card?

Other sites with fake credit scores, that can be useful for looking at some of your credit report data, would be CreditSesame.com, credit.com quizzle.com, wisepiggy.com

You need to learn how to manipulate the usage of your credit cards to optimise your FICO score. Do this only when you plan to apply for more credit. http://ficoforums.myfico.com/t5/General-Credit-Topics/How-do-I-play-the-1-9-Utilization-Game-Please-Help/m-p/2471257#M199479

You should have at least 3 credit cards. You also want to aim for a few bank cards with at least a $10,000 credit limit (premium bankcard accounts) as lack of such accounts is another reason that FICO can give as to why your credit score isn't higher.

And if you don't have credit other than credit cards, you should consider getting 1 or 2 small secured instalment loans. http://ficoforums.myfico.com/t5/General-Credit-Topics/A-Signature-loan-to-improve-my-credit-score/m-p/3134392/highlight/true#M188456

For Amazon.com purchases, you want either a US Bank Cash+ card (apply in a US Bank, or call 888-444-2265) and/or a Sallie Mae Rewards Mastercard: https://www.salliemae.com/credit-cards/sallie-mae-card/

Re: Some basic CC advice needed

Anonymous — Wed, 04 Feb 2015 14:58:11 GMT

@Themanwhocan wrote:
@Anonymous wrote:
Hi, never posted here before, looking for some advice as to getting another card or two to help build my credit.

Right now I just have two cards, a CapOne platinum with 0 balance I never use (this was my first card when rebuilding credit) and a Chase Freedom I put lots of minor stuff on and pay off every month, rolling over a 10% balance. My credit was steadily going up for awhile then it stopped at 675. There's so many cards out there I don't know where to start.. And I don't want to be turned down for one. Any advice?

Also am I doing the right thing by carrying over a 10-15% balance every month on a card or should I be paying them off every month?

Thanks

What is the Credit limit on each card, and what balance is reporting on each? When did you open each card (ie, how old are they)?

What else is on your credit reports? Any baddies? Any Morgage, Car loan, Installment loan, student loan, etc?

The Credit Karma scores are useless (use that site for supplimental info about what is on your credit reports, etc). You say your FICO score is 675, but where did you get that score from, and which credit bureau data was used (Experian, Equifax, Transunion)?

- 2500 limit on the CapOne, zero balance.. I don't use this card anymore but with the advice in this thread i'm going to try to PC it to a Quicksilver. I've had this card since 10/2011. It was given with a 1000 limit.

- 5000 limit on the Chase, i've been rolling over 400-500 balance every month because that's what I always heard was optimal to do vs paying it off monthly. I've had this card one year, 2/2014. It was given with a 4000 limit.

- I also have one car loan paid off a few years ago with zero late payments, and another one started a year after.. also no late payments I have no late payments anywhere on anything. No other types of loans, no mortgage etc.

- I do still have that collection showing that Transunion is reporting and they shouldn't be because it was paid off years ago. I did go to file for an inquiry yesterday and found out that it's actually going to just drop off my report in 4 months anyway, so now not sure if I should bother I might just wait the couple months for it to go away.

- I did pay for the quarterly monitoring at some point so that 673 is being reported by Transunion on this site as of 11/7/14.

Re: Some basic CC advice needed

Themanwhocan — Wed, 04 Feb 2015 16:30:00 GMT

@Anonymous wrote:
@Themanwhocan wrote:
@Anonymous wrote:
Hi, never posted here before, looking for some advice as to getting another card or two to help build my credit.

Right now I just have two cards, a CapOne platinum with 0 balance I never use (this was my first card when rebuilding credit) and a Chase Freedom I put lots of minor stuff on and pay off every month, rolling over a 10% balance. My credit was steadily going up for awhile then it stopped at 675. There's so many cards out there I don't know where to start.. And I don't want to be turned down for one. Any advice?

Also am I doing the right thing by carrying over a 10-15% balance every month on a card or should I be paying them off every month?

Thanks

What is the Credit limit on each card, and what balance is reporting on each? When did you open each card (ie, how old are they)?

What else is on your credit reports? Any baddies? Any Morgage, Car loan, Installment loan, student loan, etc?

The Credit Karma scores are useless (use that site for supplimental info about what is on your credit reports, etc). You say your FICO score is 675, but where did you get that score from, and which credit bureau data was used (Experian, Equifax, Transunion)?

- 2500 limit on the CapOne, zero balance.. I don't use this card anymore but with the advice in this thread i'm going to try to PC it to a Quicksilver. I've had this card since 10/2011. It was given with a 1000 limit.
- 5000 limit on the Chase, i've been rolling over 400-500 balance every month because that's what I always heard was optimal to do vs paying it off monthly. I've had this card one year, 2/2014. It was given with a 4000 limit.

- I also have one car loan paid off a few years ago with zero late payments, and another one started a year after.. also no late payments I have no late payments anywhere on anything. No other types of loans, no mortgage etc.

- I do still have that collection showing that Transunion is reporting and they shouldn't be because it was paid off years ago. I did go to file for an inquiry yesterday and found out that it's actually going to just drop off my report in 4 months anyway, so now not sure if I should bother I might just wait the couple months for it to go away.

- I did pay for the quarterly monitoring at some point so that 673 is being reported by Transunion on this site as of 11/7/14.

You might want to use the CapOne card occasionally so it looks like an active card, but definitely pay it off completely a few days before the statement date. The Chase card pay it off a few days before statement date except for a small amount, like 1%, and then pay in full after the statement date.

Having an open Car loan is good. Get a product change on that CapOne to a Quicksilver ( and definitely NOT Quicksilver One, or any other card with an annual fee).

If you can wait until you get that collection removed, that will be best. When you do start applying for cards, you might want to apply for another Chase card, such as the Chase Sapphire Preferred, it has a good signup bonus, assuming you can spend enough to qualify for it. Then just shy of a year later you stop using it for at least 3 months, then ask for the credit limit to be moved to the Freedom and close the Sapphire Preferred before the annual fee is due. You generally get good credit limits from Chase on new cards, but as you saw, they apparently gave you only $1000 on a credit limit increase.

Re: Some basic CC advice needed

takeshi74 — Wed, 04 Feb 2015 18:03:06 GMT

@Anonymous wrote:
Also am I doing the right thing by carrying over a 10-15% balance every month on a card or should I be paying them off every month?

You never need to carry a balance to have a balance report for scoring purposes. Carry and report are two entirely different things.

If you need to adjust the reported balance then do so prior to report date (statement date for most cards) but then pay off the remaining statement balance by the due date.

@Anonymous wrote:
but it's also showing TU is still reporting a collection that I paid off 2 years ago, so now I have to take care of that.

Definitely address derogs as they can hold your scores down. Hit the Rebuilding subforum to see what you can do.

@Anonymous wrote:
I have too few accounts and a short credit history even tho the age on my oldest account is 9 years.

It's not the oldest that matters but your Average Age of Accounts (AAoA). Even with a 9 year account you could have a low AAoA.

Re: Some basic CC advice needed

Anonymous — Wed, 04 Feb 2015 18:20:38 GMT

@Anonymous wrote:
Thanks for all the advice.

I just found out about creditkarma a few min ago, and on there I have a 726 TU and a 729 Equifax.. but it's also showing TU is still reporting a collection that I paid off 2 years ago, so now I have to take care of that.

I am definitely going to try to upgrade my CapOne, with the CreditKarma scores above do I have a good shot of getting approved for the Sallie Mae card?

Please unfind out about credit karma. its fake and its frustrating if you care about your journey. the credit scores here or from cards like barclay rewards or walmart are much more helpful.

Re: Some basic CC advice needed

Anonymous — Wed, 04 Feb 2015 20:09:46 GMT

CK is great for tracking what's happening to your credit report. However, the scores are Vantage3.0, which is not what most companies use. I would recommend not trusting the scores, especially once you establish yourself. That said, that fact that it shows a collection is probably legit, and you should investigate.

I want to clarify the whole "don't carry a balance thing," because, if you hang around here long enough, somebody is going to mention optimization. You need to have at least one card show a balance as of each statement cut. If you do not, it looks like you aren't using your credit, which can severely hamper your score. However, that is not the same thing as carrying a balance. If at all possible, you want to pay the balance in full each month by the due date, so that there is no carried balance earning interest.